What is Floating Capital?

Floating capital is the amount of funding needed by a business to pay for its immediate operational needs. At a general level, floating capital is working capital , which focuses on the current assets of a business, minus its current liabilities . More specifically, floating capital is the net amount of funding needed to pay for a firm's investments in receivables , prepaid expenses , and inventory . It does not include the funds invested in the fixed assets of a business.

Terms Similar to Floating Capital

Floating capital is also known as circulating capital .